As a club, there are options available in terms of the status of the club. This depends on the club’s activities and circumstances.
Community Amateur Sports Club (CASC)
A Club that operates on a non-for-profit basis can potentially apply to obtain CASC status.
In order to qualify a club must meet various conditions and apply to HMRC.
Once registered, a CASC can benefit from:
- Exemptions from corporation tax (up to prescribed limits) on certain sources of income
- Gift aid tax rebates of 25% on qualifying donations
- 80% mandatory charitable rate relief for business rates
Visit the Community Amateur Sports Club guidance.
Charitable Status
A club that operates for charitable purposes may choose to register with the Charity Commission as a registered charity.
There are high standards of regulation and bureaucracy which are there to stop misuse.
A club with charitable status can benefit from:
- Exemptions from tax on certain types of Income, Capital Gains Tax and Stamp Duty. Also, gifts to charity are exempt from Inheritance Tax.
- Certain types of grants and funding
- Charitable VAT status which affords a limited amount of relief
- Gift aid tax rebates of 25% on qualifying donations
- 80% mandatory charitable rate relief for business rates
Visit the Charity Commission for more information on charitable status.
When should I register the club with HMRC?
It is vital that the officers of a club consider in advance the rules for registering, filing and paying corporation tax in order to avoid penalties and interest which, in an unincorporated club, they may be personally liable.
Irrespective of whether you have any liability for Corporation Tax, a club must register with HMRC as soon as it starts to trade.
It will draw up its accounts for its accounting period and any liability to corporation tax is due 9 months and 1 day after the end of the accounting period.
A corporation tax return must be filed within 12 months of the end of the accounting period.
HMRC are entitled to raise any queries regarding a return submitted at any time up until 12 months from the day on which the return was delivered (if submitted on or before the due date). It is therefore vital to keep adequate records to support the accounts.
Remember, penalties and interest will be due for late or inaccurate returns and payments.
These guidance notes provide details of corporation tax which are relevant to community rugby clubs. It is written in general terms and cannot be relied upon to cover specific situations. Clubs are reminded that they should therefore seek their own independent professional advice. The notes have been prepared by Jerroms Business Solutions Ltd and is correct to the best of their knowledge and belief at 30th June 2017.The author takes no responsibility for any consequence of a user or club placing reliance on this guidance.
